The government of Liberia has ratified an amended mineral development agreement (MDA) signed with Luxembourg-headquartered steel producer ArcelorMittal, extending the duration of the agreement until 2050, with an option for a further 25-year renewal, the producer announced.
The agreement coincides with the recent inauguration of ArcelorMittal’s iron ore concentration facility at Tokadeh in Nimba County. ArcelorMittal stated that the new concentrator represents the core element of its $1.8 billion expansion program in Liberia, bringing the company’s cumulative investment in the country to $3.5 billion, the largest foreign direct investment in Liberia’s post-war economy.
ArcelorMittal pushes forward its investments in Liberia
According to ArcelorMittal, the expansion project has included substantial upgrades to the rail corridor connecting Tokadeh to Buchanan, improvements to port infrastructure in Buchanan - including the construction of an additional berth - and broader infrastructure investments such as two power plants.
The company stated that the project is nearing completion and is expected to increase iron ore shipments from historical levels of around 5 million mt per annum to 20 million mt in 2026. ArcelorMittal added that the expansion will also improve product quality, enabling the production of higher-grade, higher-value iron ore. In parallel, ArcelorMittal confirmed that feasibility studies are underway to assess a further increase in iron ore output beyond 20 million mt.
Railway capacity increased in advance
Under the amended MDA, provisions have been introduced for a multi-user framework governing access to the rail infrastructure. According to the government of Liberia, third-party users seeking access to the railway will be required to invest in infrastructure expansion to meet their own transport requirements. ArcelorMittal stated that it is currently expanding rail capacity to enable the transport of up to 30 million mt of iron ore annually, should the feasibility studies support an expansion beyond 20 million mt. The company noted that the additional railway capacity being developed will be reserved for its own use.
Amendment includes $200 million payment to Liberian government
Under the terms of the amended MDA, ArcelorMittal will pay $200 million to Liberia in exchange for specific rights granted under the agreement. These include the extension of mining rights and reserved access to the expanded rail capacity financed by the company.
